The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-01-19

WASHINGTON, January IS. - Sec
rotary Manning has written the
following reply to the Senate resolu-
lion OF January 9Th, calling upon
him for information as to the sums OF
money owing to the United States by
the Pacific railroads:
TRkAsuRY DEPARTMENT,
WAsHIN0r0N, January II, 1887.
To tho President Of the Senate, pro tenn;
SIR have the honor to state that
the amount due from the several
Pacific railroad com panies Tor interest
paid by the United States to January
Is, 1887, on subsidy bonds Issued to
the sad companies, was $70,854,-
1926, of which there had bsen repaid
by the clmpsuies at that date the
sum Of }l,553, IA, leaving due on
account OF inteIet the sum OF $4S,-
500, l8l. There will bs due on thu came
account at maturity Of the subsidy
bonds, September II, 1857, the further
sum of $4S, 406, 921, making q total
OF 500, 700, l0S due and to become due
on account OF interest. There is also
TO bscome due on account Of principal
of these bonds at maturity the sum Of
8i,62S,6l2. making an aggregate In
debtedness due aud TO become due OF
1857 ,3S2,6l5. la regard to the In
quiry as TO what d ference will result
to the Treasury II the Senate bill No.
1900 should become law, 1t may bs
stated that the special method pre-
scibed by the bill for Obtaining the
constant annual payment, II one
which, while proposing to fad a con-
slant semi.annual payment adeq uate
TO extinguish both principal and in
terest OF the Indebtedness OF
the companies, Is insufficient to
cancel even the interest, being
sniff Gent to provide for the payment
OF only eleven-tweltths OF the interest.
The present worth OF the indebtedness
Of the companies on October /, 1885,
ascertained as prescribed in the bill,
is Sll0, WS, 100, the semi-aunual inter
est on which, computed at s per
can't. per annum, is $l,66i87l; while
the constant semi.anuual payment re-
CURED to be made under the provisions
OF the bill Is 81 ,625,9SS. The constant
semi annual payment on the bond OF
indebtedness, required to cancel the
Indebtedness above mentioned (bll0,-
07S, 1907, principal and interest in
eighty years oomputed at the rats
OF 3 per cent. per aunum reinveBted
ssmi-anuually is 81 1884 ,O6S.
In conclusion, | may add that sec-
ton s Of the act OF May Z, 1873, estab-
fishing sinking fund for the Union
and Central Pac fo Railroad Oompa-
MES, commonly known as the "Ihur.
mau set" provides: THAT said sink
ing fund 30 estab ished shall, accord.
ing to the interest and proportion Of
said companies respectively therein,
bs held for the protection, security
and benefit Of the lawful aud FIST
holders OF any mortgages or lien
debts OF such companies respectively,
lawfully paramount tot he rights to
the United States, ard for the
claims OF other creditors, II
any, lawfully chMgeabls upon the
funds 80 required TO be paid into said
sinking iuod, according to their re-
spsctlvs lawfnl priorities, as well
ss for the United States, accord
ing 10 tho principle oil equity, to the
end that al persons having any claim
upon said sinking fund may be en-
titled thereto in due order" In view
OF this provision of law IL may be
proper 10 cons der whether the sink
ing fund, now held in trust by the
government, should b. treated as an
feet in determining tho indebted.
ness due the government from the
Ialroad company mentioned as is re.
CURED by Section |, first paragraph Of
Senate BIZ 1900, now urdgr consider
alton. ..
tnRDANGEL MANNING, TE
81. Sec. Of the Treasury.
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